HIRAYAMA HOLDINGS (7781) investor relations material

Executive summary

• FY26 revenue rose 4.4% YoY to ¥37,815m; operating profit increased 51.8% to ¥1,928m and net income attributable to owners of parent rose 46.7% to ¥1,259m.

• Domestic staffing growth, higher rates, price revisions and workplace efficiency supported results; Thailand operations remained subdued.

Financial highlights

• Gross profit increased to ¥7,556m from ¥6,574m; ordinary profit rose 52.6% to ¥1,985m.

• Operating profit benefited from improved staffing rates and facility efficiency, plus a ¥99.6m YoY reduction in retirement benefit expenses from actuarial differences.

• Net income attributable to owners of parent was ¥1,259m; income taxes totaled ¥667m, including ¥635m current tax and ¥32m deferred tax expense.

• Operating cash flow was ¥1,469m; cash and cash equivalents ended FY26 at ¥6,666m.

Outlook and guidance

• FY27 forecast: revenue ¥39,300m (+3.9%), operating profit ¥1,614m (-16.3%), ordinary profit ¥2,217m (+11.7%) and net income ¥1,604m (+27.5%).

• Lower operating profit reflects engineering recruitment and training investment and the temporary nature of FY26’s actuarial reduction in retirement benefit expenses; ordinary profit includes equity-method income, including a gain on negative goodwill.

• FY27 EPS forecast is ¥104.65; dividend forecast is ¥42 per share, adjusted for the stock split.

• Specialized maintenance and semiconductor technician recruitment and training remain priorities; forecasts are conservative amid Middle East uncertainty.